Track and Manage Inventory in QuickBooks Online

Get the most robust and useful bookkeeping course on the internet!
Bulletproof Bookkeeping® Mastery Course with QuickBooks Online
nerdyurl.com/BB-Course-Reg
Register to get notified about my upcoming eCommerce and QuickBooks Online course:
nerdyurl.com/ecomm-interest
Index
0:29 Buying low, selling high
1:13 The method QBO uses for costing for COGS
1:27 Adding a product into QBO
2:13 The SKU should be at least 3 letters
2:45 Back date the product
3:18 Inventory Asset
3:30 Expense account is the COGS account
4:30 Make sure you look at the item detail
4:55 Save and New, no change to P&L
5:22 Recording the 2nd expense of buying product
5:47 Selling the product, creating sales receipt, recording selling 30 of them
7:00 See the profit recorded from the sale
7:07 How the COGS was calculated
This content is for information purposes only and should not be considered legal, accounting or tax advice, or a substitute for obtaining such advice specific to your business. Additional information and exceptions may apply. Applicable laws may vary by state or locality. No assurance is given that the information is comprehensive in its coverage or that it is suitable in dealing with a customer’s particular situation. Nerd Enterprises, Inc. does not have any responsibility for updating or revising any information presented herein. Accordingly, the information provided should not be relied upon as a substitute for independent research. Nerd Enterprises, Inc. does not warrant that the material contained herein will continue to be accurate, nor that it is completely free of errors when published. Readers and viewers should verify statements before relying on them.

[@yanjiehao8228]

Great illustrations! Better than my accounting PHD professors 👩‍🏫

[@aarondouglas4232]

Thanks for this video. It looks much easier than managing stock assets manually so I will upgrade to quickbooks plus now

[@nerdenterprises]

Hi! It's been a year - curious how this went.

[@faisalbabukerala]

Good presentation 💕💕💕❤️👍

[@uroospunyali8861]

Sir, I was recording the inventory in Quickbooks online, the inventory saved as a template by mistake, which does not show up as a bill in the vendor account. How do I find out that template in QB online and bring it to the vendor account? I really appreciate your help. Thanks.

[@HectorGarciaCPA]

Great video

[@nerdenterprises]

Thank you Hector!

[@lolae5518]

Thank you for this. Please what's the difference between creating a product as an inventory asset or just inventory?

[@shantryce375]

Yes i am currently trying to figure this out!

[@wendwesen1]

Well explained. Thank you very much. For retail stores, Do we have to do this individually for each item or there is an easy way?

[@nerdenterprises]

Hi! If you want to be able to track your inventory quantities in QBO then each item needs to be separate. If you have another method of tracking outside of QuickBooks Online then you can certainly summarize in QBO, but you would want to use non-inventory parts instead of inventory.

[@abdulrahmanmubarak4268]

Liking your video is not good enough for your efforts... But rather, I have to say it clearly... That's why I'm saying here "Thanks lots" for your helpful videos

[@nerdenterprises]

Thank you! Check out my courses here --> new.nerdenterprises.com/store

[@cjwilson81]

This video was great! If I follow these steps to manage the inventory and COGS, will I still need to do any journal entries at the end of the month?

[@nerdenterprises]

I'm not sure what journal entries you're doing, so it's hard to say. You will always have to take inventory periodically and make those adjustments.

[@justinosborne4459]

Awesome Video, Is there a way to allocate multiple items per product? for example, we make coolers and each cooler has 4 feet, I created a sub category for the feet but it only deducts one per product sold, Is it possible to change this to deduct 4 per product sold?

[@nerdenterprises]

Hey Justin! You can do this with a Bundle. This lets you sell two or more products in a "Group" so that it will deduct the correct quantities based on how you define it, so 4 per product as in your example can be done very easily.

[@emmavandermaas1545]

Played at 0.75 speed - perfection!

[@netboonmarketing]

Hi. I purchase product in cases then sell it either individually or in bundles. The bundles can be multiples of the same product or different products . Can QuickBooks help me manage that?

[@nerdenterprises]

It isn't "built in" but it can be done. You have to set up the items, and then set up the bundles / kits as items. Then you transfer inventory (with an inventory adj) from the component(s) to the kits.

[@MannyCamRS]

What is the best way to manage inventory when you purchase a twenty pound bag of coffee beans and sell individual cups of coffee? Am i looking at this wrong?

[@ScottsStockDueDiligence]

i did not realize how easy it was

[@shantryce375]

Which level of qbo is this? When i go to input inventory it dosent give me the option to put in my cost and date of purchase...?

[@nerdenterprises]

This is QBO Pro, but even if you have that version you have to turn on Inventory tracking in the settings.

[@mohanrajj6788]

Hi, how to increase prices in % for available inventory in Quickbooks? Eg: current stock value $1 Million, Increasing Price 5%, after price revision the value should be $1.05 Million. Price revision don't apply for negative stocks. Could you please assist me accordingly.

[@nerdenterprises]

There isn't a way to do that in QuickBooks Online . You can use "Price Levels" and increase by percentage over the standard price, but that's a price level. The base price of each item doesn't change.

[@Rashednaber]

If you are selling for example shoes that come in different sizes. Is there a way to subcategorize qty from each size? Also what about color!?

[@nerdenterprises]

You would need to set up a separate product for each combination of size and color to track the quantities.

[@ep4684]

@@nerdenterprises wow... that seems like a lot. There are other inventory management options out there that make this easier. Does QBO integrate with any excellent inventory management systems? Better question: do you recommend any? Thank you!

[@nerdenterprises]

@@ep4684 Yes, these guys will help you set up and implement Cin7 (Formerly Dear Systems) and integrate it with QBO. Best Inventory management system out there, especially for the money. www.wearewaypoint.com/nerdent

[@ep4684]

@@nerdenterprises Excellent! Thank you for the recommendation!

[@nurulnabilah4975]

How you get RM4.88 in the last calculation?

[@ep4684]

Nice. However, your COGS should also include the item packaging and shipping supply costs. Can QBO account for those expenses too per item sold?

[@nerdenterprises]

Those are usually booked separately and directly to COGS. It is normally impractical to spend the time required to absorb those costs per item. You would have to calculate this yourself and then record a $0 bill effectively removing it from the original account it is booked to (eg when you got the freight bill and paid it). Then you would have to zero out the inventory for that item, and bring it back in with the freight costs included.

[@ep4684]

@@nerdenterprises Thank you!

[@darlafrantz5734]

Say you have 7 motors in inventory and a salesman has just emailed you and says he sold 4 motors. How do you show that you really have 4 less motors in inventory to sell since the 4 have technically have been sold? Thanks

[@nerdenterprises]

if you don't want to actually post a sale yet then you can create sales orders for the sale of each of the four motors in that will show that they're taken out of inventory. when you're running inventory stock status report you'll see it'll show the amount that are out on sales order.

[@megano6612]

@@nerdenterprises Our company currently uses Quickbooks desktop for Manufacturing and we can make sales orders right now. However we were told that Quickbooks Online doesn't offer Sales orders. Do you have recommendations for a system to record sales orders?

[@nerdenterprises]

@@megano6612 The closest thing you have to a Sales Order in QBO is an Estimate. It won't deduct the inventory quantities. If you want more detailed tracking you can use an add-on product like Dear Inventory or SOS Inventory. Many people find that the convenience and efficiency of QBO + the add-ons outweigh the cost.

[@shantryce375]

@@nerdenterprises i agree , i have used QBO for estimates. With a touch of a button, those estimates are easily converted into invoices.

[@musalah1]

Nerd Enterprises, Inc. have you had a good experience with SOS inventory? I wanted to get an add on product for inventory management

[@mihalyfreeman5928]

Hey mate maybe you should be telling everyone which version of quickbooks your using because mine, for example, does not have inventory tracking built in. Come on, wake up.

[@nerdenterprises]

Thank you for sharing. I will keep this in mind for future videos!

[@JayTaylor2010]

You mad, bro?